UPDATE 1-Airline SAS says Sweden and Denmark support tweaked rescue plan
* Main owner cash injections conditional on debt conversion
* Debtholder and shareholder meetings scheduled for September
* (Adds company comment, updates shares)
STOCKHOLM, Aug 14 (Reuters) – SAS said on Friday its main owners had approved a revised rescue plan after it made changes to a key part of the deal earlier this month to appease holders of its debt.
The airline in June agreed a 14 billion Swedish crown ($1.6 billion) plan with top shareholders including Sweden and Denmark to shore up its finances amid the coronavirus-related collapse in air travel.
But it was forced this month to revise terms of a proposed debt to equity swap in an attempt to secure the agreement of enough debtholders, a condition of unlocking cash injections from Sweden and Denmark.
Terms were tweaked for the conversion of 1.5 billion crowns ($172 million) of hybrid notes into common shares, and an option was introduced for holders of a 2.25 billion crown bond to accept either new commercial hybrid notes or shares.
SAS said the revised plan was also supported by its third largest shareholder, the Knut and Alice Wallenberg Foundation.
It added that holders of 53% of the hybrid notes and 42% of the bonds now supported the plan, which still has to be approved at noteholder meetings scheduled for Sept.2.
“The future of SAS depends on a successful outcome of the revised recapitalisation plan, as well as delivery on 4 billion crowns in efficiency improvements,” SAS chairman Carsten Dilling said.
“The board strongly encourages bond, hybrid and share holders to vote in favour of the proposals…as there are no other available alternatives.”
An SAS spokeswoman said the company had made no changes to the plan announced on Aug. 7, which also requires approval at a shareholder meeting scheduled for around Sept. 22.
The company’s shares were down 2.4% at 1127 GMT.
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